Which of the Following Is a Reason for Evaluating Purchasing

question 52

Multiple Choice

Which of the following is a reason for evaluating purchasing performance regularly? 

• A) To rate the individual buyer. 
• B) To lower material prices. 
• C) Fewer rejects of incoming goods. 
• D) Better sourcing decisions.

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Definitions:

Selling and Administrative Expenses

Costs related to the selling of products and the managing of the company, excluding production costs.

Contribution Margin

The amount of revenue remaining after deducting variable costs, contributing towards covering fixed costs and generating profit.

Selling Price

The price the customer pays for a product or service.

Variable Maintenance

Maintenance costs that fluctuate with the level of production or usage of equipment.